The coronavirus outbreak is not a health issue alone, it affected the global economy as a whole. The impact of the pandemic on the Indian economy is largely disruptive. According to the ministry of statistics, India’s GDP went down to 3.1%. Almost 140 million people lost jobs during the lockdown and some others had salary cuts. Considering the stress faced, IRDAI has come up with few modifications in the policies filed by general and standalone insurers, which allows payment of health insurance premiums in installments.
In addition to the current option, this new option will let people pay the health insurance premiums on a monthly, quarterly, or half-yearly basis. Well, it’s up to the insurer whether to provide this option to consumers.
If the consumer of a health insurance policy is paying a premium of 24,000, now he can ask his insurer to change the frequency of annual payment mode to monthly or quarterly or half-yearly. That is for monthly payment mode he can pay Rs. 2000/month. Which can be affordable to those affected by job loss or cuts rather than the lump sum pay at the end of the year.
Increase large cover buyers
This choice for payment of premium in installments welcomes more consumers to take up health insurance letting more people under the insurance blanket. More people will be able to opt for large cover as more premium frequency options are available. This monthly option premium can be beneficial for senior citizens as their health plans are significantly high.
No major change is expected in the basic premium of the health insurance plans. Depending on the premium payment option the consumers have choosen ie, quarterly or monthly, the regulatory has given the freedom to insurers to marginally increase the total premium. The increase in premium will vary from plan to plan and insurer to insurer but will be fair and reasonable.
Payment for claims
If a policyholder who pays the premium on a monthly basis files a claim to the insurer after paying for 2-3 months. In such a case the insurer is obliged to accept the claim, but the shareholder will have to pay the premium in one go or insurer can deduct the balance premium amount to be paid by the shareholder from the claim amount payable.
